Malaysia Airlines to axe 6,000 jobs in radical restructuring
Tragedy-struck airline will be taken private and slash long-haul flights as it battles for survival
Malaysia Airlines is set to slash 6,000 jobs and stop trading as a public-listed company in a major structuring in an effort to stay afloat following two air disasters.
State fund Khazanah Nasional said 30 per cent of its 20,000 workforce will go and a new chief executive will be brought in as part of a six billion ringgit (£1.2 billion) restructuring that will see Malaysia Airlines taken fully private by the end of the year.
The wealth fund, which holds a majority stake in the embattled airline, said it hopes to make the group profitable by 2018 and plans to re-list in three to five years once the restructuring is completed. The airline is also set to scale back long-haul flights in an effort to slash costs.
"The combination of measures announced today will enable our national airline to be revived," said Azman Mokhtar, head of state investment fund Khazanah Nasional.
Malaysia Airlines has seen its share price decline 40 per cent following the loss of the MH370 over the Indian Ocean and the tragic crash of the MH17 in eastern Ukraine as it flew over a rebel-controlled area, killing 298 people and taking the total death toll to 537 passengers and crew.
Video: Major restructuring at Malaysia Airlines
Earlier this week, the airline reported a widening loss of 307 million ringgit (£58.7m) in the second quarter as it warned of a continuing "sharp decline" in weekly bookings as a result of the MH370 and MH17 disasters, which have taken a heavy toll on the company's reputation.
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